Nigeria: CBN disburses N40.3 billion to MSME fund
Collateral requirements have also been relaxed.The Central Bank of Nigeria (CBN) has disbursed N40.3 billion (€189.5 million) to beneficiaries of the N220 billion micro, small and medium enterprises development and (MSMEDF), Head of relationship management at the CBN Tobin Jonathan has announced.
"As we speak, N40.3 billion has been disbursed to state governments, commercial banks, microfinance banks and financial cooperatives," he said on Wednesday (March 18th), quoted by This Day.
He added that collateral conditions for the fund have been relaxed, with the initial deposit reduced from 25 per cent of the borrowed sum to 15 per cent.
The Fund was created in August 2013 to improve access to finance for micro, small and medium-sized enterprises (MSMEs). It provides funds at reduced cost to financial institutions and aims to enhance women's access to finance by allocating 60 per cent of the fund to them.
This announcement comes a few weeks after Nigeria's federal government revealed that it is working to set up a bank dedicated to SMEs.
Minister of finance Ngozi Okonjo-Iweala said the bank would be launched next month. "This administration is creating a bank called the 'Development Bank of Nigeria' that will allow people to borrow from five to seven years. It will help SMEs to access funding for a longer period of time, something they have never being able to do," she told Vanguard.